NWFL

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved record second quarter net income of $9.3 million, a 50% increase compared to the same period last year, while year-to-date net income reached $26.8 million. Successfully completed all planned integration activities for Presence Bank, including core system conversion and brand convergence across all branches. Recovered the shareholder dilution from the Presence Bank acquisition two years ahead of original estimates, with tangible book value now exceeding pre-deal levels. Net interest margin expanded to 3.9%, benefiting from a repositioned portfolio and favorable interest rate movements despite a competitive deposit environment. Implemented a commercial credit system from Presence Bank enterprise-wide, utilizing embedded AI and machine learning to enhance credit officer productivity. Attributed a $7.7 million net charge-off to a single customer's Chapter 11 bankruptcy filing, which management characterized as an acceptable outcome given the total exposure. Established a three-year rollout plan for AI agents across every department to automate routine activities and supplement employee workflows. Anticipates continued earnings power from the combined organization following the completion of operational integration and system convergence. Maintains a disciplined M&A strategy, continuing to engage in discussions with potential targets despite reduced urgency among sellers due to a better banking environment. Expects loan accretion from purchase accounting to remain stable at approximately $700,000 per quarter for the remainder of 2026. Assumes loan pipeline yields will remain in the mid-to-high 6% range, though management notes increasing competition for larger deposits. Recorded a $7.7 million charge-off related to a $22 million loan exposure following a customer's bankruptcy filing in June. Recognized $241,000 in non-recurring interest income from bond calls and accelerated credit marks, contributing approximately 3 to 4 basis points to the NIM. Incurred $75,000 in legal fees during the second quarter specifically related to the workout of the bankrupt loan exposure. Announced a leadership transition with Steven Daniels appointed as Chief Lending Officer following the retirement of a 47-year banking veteran. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management explained that NIM improvement was largely driven by managing down money market yields and a 'wave event' where high-rate CD specials matured into lower-rate products. Spot deposit costs at the end of June were approximately 2 basis points higher than the quarterly average, indicating rising competitive pressure. CEO Jim Donnelly noted that while conversations continue, there is less urgency for sellers compared to a year ago due to improved earnings and a better regulatory environment. The bank remains focused on being a 'disciplined acquirer' and demonstrating value to potential partners' employees and shareholders. Growth was primarily driven by commercial real estate and seasonal strength in indirect consumer lending, partially offset by higher-than-expected payoffs. Management described the lending market as 'competitive but rational,' with the bank maintaining its typical win rate on loan terms and rates.

This article first appeared on GuruFocus. Net Income: $9.3 million, up from $6.2 million in the same period last year. Earnings Per Share (EPS): $0.86 per diluted share, compared to $0.67 per diluted share last year. Net Interest Margin: Expanded to 3.9%, an increase of 47 basis points year-over-year. Return on Average Assets: Improved to 1.28%. Return on Average Tangible Equity: Increased to approximately 15%. Tangible Book Value Per Share: $22.96 at quarter end. Pre-Provision Net Revenue: $13.6 million, a 55% increase from the prior year quarter. Total Assets: Approximately $2.9 billion at quarter end. Total Loans: Increased to $2.26 billion. Total Deposits: Approximately $2.51 billion. Allowance for Credit Losses: $25.6 million, or approximately 1.13% of total loans. Merger-Related Expenses: $53,000 during the quarter. Net Charge-Off: $700,000 related to a customer's bankruptcy filing. Warning! GuruFocus has detected 4 Warning Sign with NWFL. Is NWFL fairly valued? Test your thesis with our free DCF calculator. Release Date: July 22, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Net income increased by 41% compared to last year, reaching a record $26.8 million. Net interest margin expanded to 3.9%, an increase of 47 basis points from the previous year. Successful integration of Presence Bank, contributing to improved financial performance. Implementation of AI and machine learning to enhance productivity and customer experience. Strong focus on succession planning and leadership development, with key promotions within the company. A customer loan totaling $22 million filed for Chapter 11 bankruptcy, resulting in a $700,000 net charge-off. Increased competition in the deposit market, potentially leading to higher deposit costs. Nonperforming assets totaled approximately $23 million, largely due to the bankruptcy event. Loan growth was lower than expected due to higher-than-anticipated payoffs. Merger-related expenses, although reduced, still impacted financial results with $53,000 recorded in the quarter. Q: Can you clarify the nonrecurring impact on the net interest margin (NIM) and provide an update on pipeline yields? A: John McCaffery, CFO, explained that there was $241,000 in nonrecurring income, contributing about 3 to 4 basis points to the NIM for the quarter. Pipeline yields are currently in the high to mid-6% range. The NIM improvement was largely due to managing down money market costs and maturing CD specials. Q: Are you experiencing increased competition for deposits, and what were the spot deposit costs at the end of the quarter? A: John McCaffery noted that competition for deposits is increasing, with spot deposit costs in June being about 2 basis points higher than the quarterly average. The bank is receiving more inquiries for special rates on larger deposits. Q: What is the current status and outlook for M&A activities? A: James Donnelly, CEO, stated that while the urgency for deals has decreased due to a better banking environment, Norwood Financial remains active in discussions, emphasizing their strengths as an acquirer and the benefits for potential partners. Q: What was the total dollar amount of nonperforming assets this quarter, and how does it compare to previous quarters? A: John McCaffery reported that nonperforming assets totaled around $23 million to $24 million, with one significant credit accounting for the majority. Excluding this, there would have been strong improvement in asset quality. Q: Can you provide details on the loan growth this quarter and the competitive landscape in lending? A: Loan growth was primarily in commercial real estate and consumer loans. James Donnelly mentioned that the lending market is competitive but rational, with competition from both community banks and larger institutions. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Norwood Financial Corp. (NWFL) came out with quarterly earnings of $0.86 per share, missing the Zacks Consensus Estimate of $0.87 per share. This compares to earnings of $0.67 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -1.15%. A quarter ago, it was expected that this company would post earnings of $0.81 per share when it actually produced earnings of $0.72, delivering a surprise of -11.11%. Over the last four quarters, the company has surpassed consensus EPS estimates just once. Norwood Financial, which belongs to the Zacks Banks - Northeast industry, posted revenues of $29.37 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 3.40%. This compares to year-ago revenues of $21.31 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Norwood Financial shares have added about 10.4% since the beginning of the year versus the S&P 500's gain of 9.7%. While Norwood Financial has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Norwood Financial was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.93 on $29.2 million in revenues for the coming quarter and $3.45 on $114.1 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Northeast is currently in the top 36% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Citizens Financial Services (CZFS), is yet to report results for the quarter ended June 2026. This bank is expected to post quarterly earnings of $1.98 per share in its upcoming report, which represents a year-over-year change of +12.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Citizens Financial Services' revenues are expected to be $29.3 million, up 7.3% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Norwood Financial Corp. (NWFL) : Free Stock Analysis Report Citizens Financial Services Inc. (CZFS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Quarterly Highlights: Record net income of $9.3 million. Record net interest income of $26.8 million. Diluted earnings per share of $0.86. Total assets of $2.908 billion. Tangible book value per share increased to $22.96, surpassing the pre-acquisition value of $22.90. Successfully completed Presence Bancshares integration, including core system conversion and brand convergence. HONESDALE, Pa., July 22, 2026 (GLOBE NEWSWIRE) -- Norwood Financial Corp (the “Company”) (Nasdaq Global Market-NWFL), the holding company of Wayne Bank, announced results for the second quarter and six months ended June 30, 2026. Jim Donnelly, President and Chief Executive Officer, stated, “We are pleased to announce strong second quarter results, highlighted by record net interest income, improved profitability, and continued progress following the integration of Presence Bancshares. Net interest margin expanded on both a year-over-year and linked-quarter basis, reflecting disciplined balance sheet management and the benefit of our larger franchise. We remain focused on credit quality, expense management, and long-term value creation for our shareholders as our teams continue to execute.” Discussion of financial results for the three months ended June 30, 2026 (all comparisons are to second quarter 2025, unless otherwise noted): Net income was $9.3 million, an increase of $3.1 million from $6.2 million. Diluted earnings per share were $0.86 compared to $0.67. Net interest income was $26.8 million, an increase of $7.8 million from $19.1 million. On a linked-quarter basis, net interest income increased $2.3 million from $24.6 million. Net interest margin (fully taxable equivalent) was 3.90% compared to 3.43%. On a linked-quarter basis, NIM increased 22 basis points from 3.68%. Pre-provision net revenue (PPNR) was $13.6 million, compared to $8.8 million in the prior-year quarter and $6.3 million in the linked quarter. Total assets were $2.908 billion, compared to $2.365 billion, an increase of 22.9%. Loans receivable were $2.263 billion compared to $1.791 billion, an increase of 26.4%. Total deposits were $2.514 billion compared to $1.998 billion, an increase of 25.8%. Tangible book value per share was $22.96 compared to $21.17 at June 30, 2025, and increased $0.54 on a linked-quarter basis from $22.43. Allowance for credit losses to total loans was 1.13%. Nonperforming loans to total loans were 1.23% and nonperforming assets to total assets were 0.98%. Credit Quality During the second quarter of 2026, the Company recorded net charge-offs of approximately $1.4 million, including a $729 thousand charge-off related to a previously disclosed borrower relationship that filed for Chapter 11 bankruptcy protection during June 2026. The relationship consists of five loans to four borrower entities with aggregate exposure of approximately $22 million to the Bank and is primarily secured by commercial real estate. The Company continues to evaluate the potential loss exposure associated with the relationship, monitor the bankruptcy proceedings, and assess underlying collateral values. Management believes the allowance for credit losses remains appropriate based on information currently available. About Norwood Financial Corp Norwood Financial Corp, through its subsidiary, Wayne Bank operates 33 Community Offices serving Wayne, Pike, Monroe, Lackawanna, Luzerne, Chester, Cumberland, and Lancaster Counties in Pennsylvania, along with Delaware, Sullivan, Otsego, Ontario, and Yates Counties in New York. The Company has total assets of $2.9 billion. The Company’s stock is traded on the Nasdaq Global Market under the symbol “NWFL”. For more information, visit wayne.bank. Forward-Looking Statements In addition to historical information, this earnings release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which describes the future plans, strategies and expectations of the Company. Forward-looking statements can be identified by the use of words such as “estimate,” “project,” “believe,” “intend,” “anticipate,” “assume,” “plan,” “seek,” “expect,” “will,” “may,” “should,” “indicate,” “would,” “contemplate,” “continue,” “target” and words of similar meaning. Forward-looking statements are based on our current beliefs and expectations and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Accordingly, you should not place undue reliance on such statements. We are under no duty to and do not take any obligation to update any forward-looking statements after the date of this report. Those risks and uncertainties include, among other things, changes in federal and state laws, changes in interest rates, our ability to maintain strong credit quality metrics, our ability to have future performance, our ability to control core operating expenses and costs, demand for real estate, government fiscal and trade policies, cybersecurity and general economic conditions. The Company undertakes no obligation to publicly release the results of any revisions to those forward-looking statements which may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. Non-GAAP Measures In addition to presenting information in conformity with accounting principles generally accepted in the United States of America (GAAP), this news release contains financial information determined by methods other than GAAP (non-GAAP). The following measures used in this release, which are commonly utilized by financial institutions, have not been specifically exempted by the Securities and Exchange Commission ("SEC") and may constitute "non-GAAP financial measures" within the meaning of the SEC's rules. The Company has provided in this news release supplemental disclosures for the calculation of Return on Average Assets, Return on Average Tangible Shareholders’ Equity, Basic Earnings per Share, Diluted Earnings per Share, Tangible Book Value and Pre Provision Net Revenue. Management believes that the non-GAAP financial measures disclosed by the Company from time to time are useful in evaluating the Company’s performance and that such information should be considered as supplemental in nature and not as a substitute for or superior to the related financial information prepared in accordance with GAAP. Our non-GAAP financial measures may differ from similar measures presented by other companies.

Interested in Norwood Financial Corp.? Here are five stocks we like better. Norwood Financial posted record Q2 2026 results, with net income of $9.3 million, or $0.86 per share, and a net interest margin that expanded to 3.90%. Management said lower deposit costs and stronger pre-provision net revenue helped drive the improved profitability. The Presence Bank integration is now complete, with core systems and branding fully merged. Management said merger expenses have largely faded and noted the deal helped boost tangible book value per share and earn back dilution ahead of plan. Credit quality was impacted by a single customer bankruptcy, leading to a $700,000 net charge-off and higher provisions. Even so, management said the outcome was acceptable relative to the $22 million exposure and that nonperforming assets were largely tied to that one credit. Norwood Financial (NASDAQ:NWFL) reported record second-quarter 2026 earnings and said it has completed the integration of Presence Bank, while management also addressed a customer bankruptcy that led to a modest charge-off during the quarter. President and CEO James Donnelly said the company continued to build momentum in the quarter, citing organic growth, the Presence Bank acquisition, favorable interest rate movement and a repositioned portfolio. Chief Financial Officer John McCaffery said second-quarter net income was a record $9.3 million, or $0.86 per diluted share, compared with $6.2 million, or $0.67 per diluted share, in the year-earlier period. → Buyback Boom: These 3 Companies Are Betting Billions on Their Own Stocks Return on average assets improved to 1.28%, while return on average tangible equity rose to approximately 15%, McCaffery said. Pre-provision net revenue reached $13.6 million, up 55% from the prior-year quarter and more than double the first quarter of 2026. Norwood’s net interest margin expanded to 3.90% in the second quarter, up 47 basis points from a year earlier and 22 basis points from the first quarter. McCaffery said about $241,000 of interest income was non-recurring, stemming from bond calls and acceleration of a credit mark tied to a purchased credit-deteriorated loan acquired from Presence Bank. That represented roughly three to four basis points of margin, with about $170,000 tied to loans and $65,000 to bonds. → 3 Photonics Companies Making Quantum Tech Possible In response to an analyst question, McCaffery said much of the margin improvement, excluding one-time items, came from lower deposit costs. He said the company had been running certificate of deposit specials over the past two years and saw a “wave” of maturities in the second quarter, with many balances rolling into specials at lower rates. McCaffery said loan pipeline yields were in the “high to mid sixes,” compared with a prior reference to around 7%. He added that second-quarter loan production was good, though higher-than-expected payoffs held back loan growth. → AI Data Centers Need Power, and These 2 Industrials Are Cashing In Donnelly said the company’s noninterest-bearing demand deposit accounts continued to grow in both account count and dollars, which could help temper higher costs in money market accounts and CDs. McCaffery said Norwood is hearing anecdotal evidence of increased competition for deposits, including more inbound calls on larger deposits seeking special rates. He said June deposit costs were about two basis points higher than the quarterly average. Donnelly said Norwood has completed all planned integration activities related to the Presence Bank acquisition, including core systems integration and brand convergence across entities and branches. “The integration team has done a great job leading us through this process,” Donnelly said, adding that the experience should benefit Norwood as it continues to explore acquisitions. Donnelly said the company is continuing discussions across locations and functions to identify best practices and policies that can improve service and results. McCaffery said merger-related expenses were largely behind the company, with about $53,000 recorded in the second quarter compared with nearly $5 million in the first quarter. The first quarter also included a one-time bank-owned life insurance restructuring fee of approximately $225,000. Norwood’s tangible book value per share was $22.96 at quarter-end, up from the first quarter and above the $22.90 reported at Dec. 31, immediately before the Presence Bank acquisition closed. Donnelly said the company had earned back the shareholder dilution from the Presence Bank transaction two years ahead of estimates. Management also discussed a customer loan totaling $22 million that entered Chapter 11 bankruptcy, which Norwood disclosed in June. Donnelly said the company has been involved in the process and has held discussions with parties to seek an agreeable outcome. Based on the current process and anticipated result, Norwood recorded a net charge-off of $700,000. Donnelly called that “an acceptable outcome given the total exposure,” while noting that the bankruptcy process remains ongoing. McCaffery said the charge-off and its impact on quantitative factors in the company’s CECL model pushed the provision higher. The allowance for credit losses totaled $25.6 million at quarter-end, or approximately 1.13% of total loans. The second quarter also included about $75,000 in legal bills related to the loan workout. In the question-and-answer session, management said nonperforming assets were largely tied to the single credit. McCaffery later clarified that nonaccrual loans totaled $22.5 million at quarter-end and were about flat with the first quarter in dollar terms. At quarter-end, Norwood reported total assets of approximately $2.9 billion. Loans increased to $2.26 billion, while deposits totaled approximately $2.51 billion. McCaffery said loan growth in the quarter came from commercial real estate and indirect consumer lending, with indirect lending benefiting from seasonal strength. The company recorded a slight paydown in commercial and industrial loans. Asked about lending competition, Donnelly said Norwood operates in competitive markets but described the environment as rational. He said the company can compete with institutions that are “rational,” and added that Norwood’s loan pipeline remained strong. Donnelly said the company is losing roughly the same percentage of loans to rate or terms as it typically would, with no indication that competition is overheated. Donnelly outlined several strategic priorities, including using artificial intelligence to improve operating efficiency and customer experience. He said Norwood is implementing a commercial credit system from Presence Bank across the broader organization. The system uses embedded AI and machine learning to bring automation, speed and quality to the credit process. Donnelly said Norwood has developed a three-year plan for rolling out AI in each department, with the goal of allowing employees to use AI agents to supplement their work and improve customer service. The company also announced leadership changes. Donnelly said Steve Daniels has been appointed chief lending officer, succeeding Vinnie O’Bell, who will retire this fall after a 47-year banking career, including the last 10 years at Wayne Bank. Daniels joined Norwood in 2011 and most recently served as chief consumer officer. Deb Kennedy, who currently oversees the Pennsylvania franchise, will become director of retail banking and oversee branches in both New York and Pennsylvania. On mergers and acquisitions, Donnelly said Norwood continues to meet with potential partners and communicate its position as an acquirer. However, he said urgency among possible sellers appears to have eased as the banking environment has improved, including a better regulatory backdrop, stronger earnings and stable credit quality. “We are a stronger organization and well-positioned to deliver a brighter future as we serve our communities,” Donnelly said in closing remarks. Norwood Financial Corp. operates as the bank holding company for Wayne Bank that provides various banking products and services. The company accepts a range of deposit products, including interest-bearing and non-interest-bearing transaction accounts, and statement savings and money market accounts, as well as certificate of deposits. It also provides commercial loans comprising lines of credit, revolving credit, term loans, mortgages, secured lending products, and letter of credit facilities; municipal finance lending; construction loans for commercial construction projects and single-family residences; land loans; construction financing; consumer loans; mortgage lending to finance principal residences and second home dwellings; and indirect dealer financing of new and used automobiles, boats, and recreational vehicles. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Norwood Financial Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Wall Street expects a year-over-year increase in earnings on higher revenues when Financial Institutions (FISI) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on July 23, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. This holding company for Five Star Bank is expected to post quarterly earnings of $0.93 per share in its upcoming report, which represents a year-over-year change of +9.4%. Revenues are expected to be $63.55 million, up 6.4% from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Financial Institutions, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +4.30%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination indicates that Financial Institutions will most likely beat the consensus EPS estimate. Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Financial Institutions would post earnings of $0.92 per share when it actually produced earnings of $1.04, delivering a surprise of +13.04%. Over the last four quarters, the company has beaten consensus EPS estimates two times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Financial Institutions appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Among the stocks in the Zacks Banks - Northeast industry, Norwood Financial Corp. (NWFL), is soon expected to post earnings of $0.87 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of +29.9%. This quarter's revenue is expected to be $28.4 million, up 33.3% from the year-ago quarter. The consensus EPS estimate for Norwood Financial has remained unchanged over the last 30 days. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -1.15%. When combined with a Zacks Rank of #3 (Hold), this Earnings ESP makes it difficult to conclusively predict that Norwood Financial will beat the consensus EPS estimate. Over the last four quarters, the company surpassed EPS estimates just once. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Financial Institutions, Inc. (FISI) : Free Stock Analysis Report Norwood Financial Corp. (NWFL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Norwood Financial Corp. (NWFL) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The earnings report, which is expected to be released on July 22, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. This company is expected to post quarterly earnings of $0.87 per share in its upcoming report, which represents a year-over-year change of +29.9%. Revenues are expected to be $28.4 million, up 33.3% from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Norwood Financial, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -1.15%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination makes it difficult to conclusively predict that Norwood Financial will beat the consensus EPS estimate. Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Norwood Financial would post earnings of $0.81 per share when it actually produced earnings of $0.72, delivering a surprise of -11.11%. Over the last four quarters, the company has beaten consensus EPS estimates just once. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Norwood Financial doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Nicolet Bankshares (NIC), another stock in the Zacks Banks - Northeast industry, is expected to report earnings per share of $2.96 for the quarter ended June 2026. This estimate points to a year-over-year change of +26%. Revenues for the quarter are expected to be $172.3 million, up 80% from the year-ago quarter. The consensus EPS estimate for Nicolet Bankshares has been revised 1.3% higher over the last 30 days to the current level. However, a higher Most Accurate Estimate has resulted in an Earnings ESP of +2.76%. When combined with a Zacks Rank of #3 (Hold), this Earnings ESP indicates that Nicolet Bankshares will most likely beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Norwood Financial Corp. (NWFL) : Free Stock Analysis Report Nicolet Bankshares Inc. (NIC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Net Interest Income: $24,600,000, an increase of 38% compared with Q1 2025. Net Interest Margin: Expanded by 38 basis points to 3.68%. Net Income: Increased by 35% on an adjusted basis. Earnings Per Share: Improved by 14% on an adjusted basis. Merger Charges: Approximately $5 million in the quarter. Coverage Ratio: 1.09%, up from 1.07% at year-end. Adjusted Pre-Provision Net Revenue: Up about 11% on a linked-quarter basis. Noninterest Income: Increased due to higher service charges and debit card income. Loan Growth: Approximately $46 million or 8.4% annualized since January 5. Deposit Growth: About $70 million or $11.6 million annualized since January 5. Warning! GuruFocus has detected 3 Warning Sign with NWFL. Is NWFL fairly valued? Test your thesis with our free DCF calculator. Release Date: April 27, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Norwood Financial Corp (NASDAQ:NWFL) reported a record net interest income of $24.6 million, marking a 38% increase compared to the first quarter of 2025. The integration of Presence Bank has been progressing well, with successful unification of IT and HR systems, contributing to increased assets and geographic presence. The company achieved a 35% increase in net income and a 14% rise in earnings per share on an adjusted basis. Norwood Financial Corp (NASDAQ:NWFL) is implementing AI and machine learning to enhance operational efficiency, particularly in the commercial credit system. The company has seen impressive loan and deposit growth, with loans growing approximately $46 million and deposits increasing by about $70 million since January 5. Norwood Financial Corp (NASDAQ:NWFL) incurred about $5 million in merger charges during the quarter, impacting GAAP results. Operating expenses have increased, particularly due to technology investments, which may affect short-term profitability. The coverage ratio slightly increased to 1.09% from 1.07% at year-end, indicating a rise in provisions. Non-performing assets were largely attributed to the commercial side, with no significant contribution from the Presence Bank acquisition. The company faces competitive pressure in deposit pricing, particularly in new markets, which could impact future margins. Q: Can you provide details on the tech-related operating expenses this quarter and what the expected run rate for operating expenses will be going forward? A: The increase in tech expenses was primarily due to investments in the Abrigo system and a new accounting system. These are ongoing expenses, and we have excluded one-time conversion charges from Q1. The current level of operating expenses is a good run rate, though we aim to reduce it slightly below $15.8 million per quarter. - John McCaffery, CFO Q: What was the contribution from yield accretion to the margin this quarter, and what is the expected impact going forward? A: Yield accretion contributed approximately $435,000 to the margin this quarter, equating to about 6 basis points. For the full year 2026, we expect $2.2 million in total margin accretion, decreasing to $2 million in 2027. - John McCaffery, CFO Q: Can you discuss the competitive conditions around deposits and your outlook on deposit costs? A: We are not seeing significant competitive pressure on deposit pricing in our markets. We continue to lower deposit costs following the December rate cut and are not planning to raise CD specials. We aim to reduce CDs to below 40% of total deposits, which should provide more flexibility. - John McCaffery, CFO and James Donnelly, CEO Q: What are the current competitive conditions in lending, and how does the pipeline look? A: The lending pipeline is healthy, with quality and pricing in line with expectations. Recent closings averaged a 7.05% yield, and most new rates are higher than the current portfolio yield, indicating room for expansion. - James Donnelly, CEO and John McCaffery, CFO Q: What are the drivers for potential growth in fee income in the upcoming quarters? A: We have been focusing on increasing debit card usage and growing our fee income businesses, such as brokerage, trust, and mortgage services. Treasury management is also expected to contribute positively in the second half of the year. - James Donnelly, CEO For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Record net interest income: Norwood reported first-quarter net interest income of $24.6 million, up 38% year‑over‑year, with net interest margin up 38 bps to 3.68%, and management expects roughly $2.2 million of yield accretion in 2026. Presence Bank integration ahead of plan: Core IT/HR integration is complete, rebranding and system rollouts (including an AI‑enabled commercial credit system) are underway, and the deal has driven faster-than-expected accretion to shareholder value; since Jan. 5 loans grew about $46 million (8.4% annualized) and deposits about $70 million (11.6% annualized). Higher merger and tech costs but improved adjusted results: The quarter included roughly $5 million of merger charges and elevated technology spending (Abrigo and a new accounting system), yet adjusted pre‑provision net revenue rose about 11% sequentially, with management calling the current operating expense run rate "probably a pretty good run rate" near 15.8. Interested in Norwood Financial Corp.? Here are five stocks we like better. Norwood Financial (NASDAQ:NWFL) executives told investors the company opened 2026 with record net interest income and continued momentum from last year, while progressing through the integration of its recently acquired Presence Bank franchise. President and CEO Jim Donnelly said first-quarter net interest income reached a record $24.6 million, up 38% from the first quarter of 2025. Donnelly added that net interest margin expanded 38 basis points to 3.68%, calling it “a great quarter for the bank” as the company benefited from its repositioned bond portfolio and favorable interest-rate movements. → Pipelines and Automation: 2 Energy Plays Built for Any Oil Price Chief Financial Officer John McCaffery said net interest income increased $3.6 million on a linked-quarter basis, driven by higher interest-earning assets. He attributed margin improvement during the quarter to “a slight decline in deposit costs” and a 7 basis point increase in interest-earning asset yields. During Q&A, McCaffery said purchase accounting also contributed to results, noting the “total pre-tax impact of purchase accounting was 435,” which he said was “substantially margin related.” Looking ahead, he said total margin accretion from yield accretion is expected to be about $2.2 million for 2026, falling to roughly $2.0 million in 2027. → Homebuilder Earnings: D.R. Horton Sticks Out as Pulte & NVR Sales Tank Donnelly said the first quarter was the first to include results from the Presence Bank acquisition, which he said increased the company’s assets, loan portfolio, geographic presence, and “earnings power.” He also said the company is ahead of its original expectations on certain acquisition benefits. “We are also realizing the strategic and financial benefits of our acquisition more quickly than planned,” Donnelly said, adding that the company now expects accretion to shareholder value ahead of initial projections and anticipates tangible book value payback will occur sooner than planned. As part of an update to the company’s 2026 strategic priorities, Donnelly highlighted progress on integration efforts and operational initiatives, including: Integration progress: Donnelly said the company has completed its “core integration,” unifying IT and HR systems, and has begun rebranding acquired locations with new signage and logos. Efficiency and customer experience initiatives: Donnelly said Norwood is deploying Presence Bank systems and processes across the combined organization, including a commercial credit system using “embedded AI and machine learning,” which he said is scheduled to be integrated in July. Talent and leadership: Donnelly said the organization “became bigger and stronger” with the addition of former Presence Bank employees, including new executives joining the Wayne Bank team. Shareholder value: Donnelly pointed to the company’s quarter-one performance and prior balance sheet actions, including portfolio rebalancing completed in 2024, as contributors to improved results. → Meta Platforms Earnings Preview: What to Watch in Q1 2026 Report McCaffery noted the quarter continued to include merger-related costs. “We had about $5 million in merger charges in the quarter,” he said, adding that the company provided adjusted returns to help investors evaluate performance excluding those expenses. He also said adjusted pre-provision net revenue increased about 11% on a linked-quarter basis, helped by improved margin on a larger balance sheet but “offset by higher expenses.” McCaffery said quarterly expenses rose as a percentage of average assets compared with the fourth quarter of 2025, with much of the increase tied to technology. He described the higher costs as investments in “new systems that will ultimately drive efficiency in the future,” specifically mentioning “the Abrigo system and our new accounting system.” In response to a question about the operating expense run rate, McCaffery said the company attempted to exclude “conversion and other charges” that were one-time in nature and indicated that the current level is “probably a pretty good run rate,” while also expressing a desire for expenses to come down modestly. He said he would not expect quarterly operating expenses to drop “more than … below 15.8” for the quarter. McCaffery said loan and deposit growth has been strong since the acquisition closed. He reported that since January 5, loans grew by approximately $46 million, or 8.4% annualized, while deposits grew about $70 million, or 11.6% annualized. On credit, McCaffery said the provision for credit losses increased versus the fourth quarter of 2025, in part due to annual updates of historical factors in the model and integration of the Presence Bank portfolio. He said the allowance coverage ratio stood at 1.09%, up from 1.07% at year-end. McCaffery also noted the company elected early adoption of ASU 2025-08 and therefore “did not experience a CECL double count” on acquired non-PCD loans. Asked about non-performing assets, McCaffery said he did not believe Presence contributed non-performing loans and that non-performance was “mostly us,” adding he was not aware of any large new issue. Donnelly said the increase was “largely on [the] commercial side,” while indirect and consumer portfolios were “about the same” as the prior quarter. On deposit competition, McCaffery said the company continued lowering deposit costs based on the December rate cut and was “not talking about raising any of our specials on CDs at all.” Donnelly characterized competitive promotional rates as “spotty” and tied to institutions with high loan-to-deposit ratios or unique strategies, adding Norwood has not seen significant upward pressure in its markets and has observed some competitors lowering rates. McCaffery said the company is working to bring CDs below 40% of deposits and expects better visibility into the full deposit portfolio following the April 5 completion of the core conversion. Donnelly added that further benefit from deposit repricing may be “smaller than it had been,” though still present. On loan pricing and the pipeline, Donnelly said the pipeline is “very healthy,” with 30-, 60-, and 90-day views “ahead of our general pipeline.” He said recent closings averaged 7.05% on “the last 18.5 million we booked,” while McCaffery added that most new rates remain higher than the current portfolio yield. Regarding margin expectations, McCaffery said the margin could continue to improve but not at the same pace as in the first quarter. He suggested potential for “maybe three to four, five basis points” of improvement, and Donnelly later clarified that comment referred to the “next couple quarters.” Non-interest income increased year-over-year, which McCaffery attributed to higher service charges and debit card income. Donnelly said debit revenue improvement reflects changes made in strategy, including getting “more debit cards in more people's hands” and increasing usage. He also said the company sees room to expand fee businesses—such as brokerage, trust, and mortgage—though growth depends on staffing, and added that treasury management is “geared up for the second half of the year.” In closing remarks, Donnelly said the company’s “disciplined approach, high quality credit metrics, and careful execution” are enabling improved financial results and “lasting value” for shareholders as integration continues. Norwood Financial Corp. operates as the bank holding company for Wayne Bank that provides various banking products and services. The company accepts a range of deposit products, including interest-bearing and non-interest-bearing transaction accounts, and statement savings and money market accounts, as well as certificate of deposits. It also provides commercial loans comprising lines of credit, revolving credit, term loans, mortgages, secured lending products, and letter of credit facilities; municipal finance lending; construction loans for commercial construction projects and single-family residences; land loans; construction financing; consumer loans; mortgage lending to finance principal residences and second home dwellings; and indirect dealer financing of new and used automobiles, boats, and recreational vehicles. The article "Norwood Financial Q1 Earnings Call Highlights" was originally published by MarketBeat.